Correlation Between Hain Celestial and Mamas Creations
Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Mamas Creations at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hain Celestial and Mamas Creations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hain Celestial and Mamas Creations, you can compare the effects of market volatilities on Hain Celestial and Mamas Creations and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hain Celestial with a short position of Mamas Creations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Mamas Creations.
Diversification Opportunities for Hain Celestial and Mamas Creations
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hain and Mamas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Mamas Creations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mamas Creations and Hain Celestial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Hain Celestial are associated (or correlated) with Mamas Creations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mamas Creations has no effect on the direction of Hain Celestial i.e., Hain Celestial and Mamas Creations go up and down completely randomly.
Pair Corralation between Hain Celestial and Mamas Creations
Given the investment horizon of 90 days The Hain Celestial is expected to under-perform the Mamas Creations. In addition to that, Hain Celestial is 1.33 times more volatile than Mamas Creations. It trades about -0.04 of its total potential returns per unit of risk. Mamas Creations is currently generating about 0.24 per unit of volatility. If you would invest 771.00 in Mamas Creations on August 27, 2024 and sell it today you would earn a total of 145.00 from holding Mamas Creations or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hain Celestial vs. Mamas Creations
Performance |
| Timeline |
| Hain Celestial |
| Mamas Creations |
Hain Celestial and Mamas Creations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hain Celestial and Mamas Creations
The main advantage of trading using opposite Hain Celestial and Mamas Creations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Mamas Creations can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mamas Creations will offset losses from the drop in Mamas Creations' long position.| Hain Celestial vs. J J Snack | Hain Celestial vs. Lancaster Colony | Hain Celestial vs. Treehouse Foods | Hain Celestial vs. Simply Good Foods |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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